Do not let the IRS levy your bank account or wages, you can stop them today!
The IRS levies when the taxpayer fails to respond to IRS Notices and Letters. In defense of most taxpayers, the IRS failed to send them notices of letters to their correct address.
If the IRS has sent you a notice or letter indicating they are about to take levy or lien action within 10 or thirty days, make it a point to call a professional tax firm to handle the IRS or make the call yourself. The IRS will follow up on this threat and take the appropriate enforcement action.
How to stop the IRS Levy.
Simply by making a call to the IRS and giving them a financial statement to work out some type of settlement, the IRS will stop the federal tax levies. They simply want your case closed and off the master file list. The IRS will close your case usually in one of three ways. They will accept a payment agreement, put you in a hardship status or will accept the filing of an offer in compromise.
As a former IRS Agent I should warn you about speaking to the IRS. If you want the best result, it is recommended that you hire a professional tax firm.
The second option to delay the levy is to file a C.D.P. Collections Appeal.
Collection Due Process (CDP) is available if you receive one of the following notices:
1. Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320.
2. Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing.
3. Notice of Jeopardy Levy and Right of Appeal.
4. Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing.
Collection Appeals Program (CAP) is available for the following actions:
1. Before or after the IRS ?les a Notice of Federal Tax Lien.
2. Before or after the IRS levies or seizes your property.
3. Termination of an installment agreement.
4. Rejection of an installment agreement.
Remember, act fast. The IRS is faithful about sending out federal tax levies.
If levies are sent out, the IRS will obtain levy information from your last 1040 or information they have obtained about you from sources that have reported income. The most common forms of levy sources come from past employers or banks you have received interest income from. Those are the first line of levies that the IRS sends out.
